Gucci America, Inc. v. Gold Center Jewelry

997 F. Supp. 399, 1998 U.S. Dist. LEXIS 803, 1998 WL 35013
CourtDistrict Court, S.D. New York
DecidedJanuary 29, 1998
Docket97 Civ. 1354(LAK), 97 Civ. 1374(LAK)
StatusPublished
Cited by13 cases

This text of 997 F. Supp. 399 (Gucci America, Inc. v. Gold Center Jewelry) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gucci America, Inc. v. Gold Center Jewelry, 997 F. Supp. 399, 1998 U.S. Dist. LEXIS 803, 1998 WL 35013 (S.D.N.Y. 1998).

Opinion

MEMORANDUM OPINION

KAPLAN, District Judge.

These matters are before the Court on motions to vacate default judgments entered against many of the defendants on claims of violation of the Trademark Act of 1946 as amended by the Anticounterfeiting Consumer Protection Act of 1996 (the “1996 Act”). Briefly stated, the plaintiffs are manufacturers of trademarked goods marketed under the Gucci and Guess? brands. The defendants all appear to be retail jewelry stores doing business in the Bronx. Each is alleged to have sold counterfeit Gucci and Guess? merchandise even after agreeing to cease and desist from doing so. In view of the plethora of post-judgment applications, some of them repetitive, and two notices of appeal filed by counsel for a number of the defendants, it is essential to begin with a detailed summary of the course of proceedings in these cases.

I

Both actions were commenced in late February 1997. The complaints make similar allegations of trademark infringement and counterfeiting. Both sought damages and injunctive relief. The Gucci complaint named as defendants Gold Center Jewelry (“Gold Center”), Home Boy 2000 (“Home Boy”), Big Time Jewelry (“Big Time”), Gold Fortune Jewelry (“Gold Fortune”) and John Does 1-8. The Guess complaint also named Gold Center, Home Boy, Big Time and twenty John Doe defendants. In addition, it named Empire Jewelry (“Empire”), Gold “N” Ice (“Gold”), Gold Spot Jewelry (“Gold Spot”), Golden Touch Bronx Corp. (“Golden Touch”), Manny’s Joyería Jewelry (“Manny’s”), Oro-Uno Jewelry, Inc. (“Oro-Uno”) and Senobar Jewelry (“Senobar”). Affidavits purportedly reflecting service on each of the defendants except Gold Fortune and the Does were filed in April 1997. 1 The Default Judgments

With the exception of Gold Spot, which moved unsuccessfully to dismiss the Guess complaint pursuant to Rules 12(b)(4) and (5), none of the defendants appeared in either action. 2 In consequence, on May 6,1997, the Court granted plaintiffs’ applications for default judgments in both cases as to each of the defaulting defendants — Gold Center, Home Boy and Big Time in both cases and Empire, Gold, Golden Touch, Manny’s, Oro-Uno and Senobar in the Guess case. The judgments granted principally injunctive relief and retained jurisdiction to award damages, including statutory damages, as well as attorneys’ fees and costs. In June 1997, the Court granted plaintiffs’ applications for leave to conduct discovery against the defaulting defendants in order to enable plain *401 tiffs to present their damages cases, and several of the defaulting defendants were deposed.

The Damage Awards

On September 17, 1997, the plaintiffs filed papers in support of applications for the entry of judgments for damages pursuant to Rule 55(b)(2). The applications specifically sought awards of statutory damages pursuant to the 1996 Act in the amount of $25,000 against each defaulting defendant in each case. Although the applications were served on each defaulting defendant, none appeared or filed any papers in response. By orders entered October 16, 1997, the Court granted the applications and directed the Clerk to modify the judgments previously entered to award $25,000 plus costs and attorneys’ fees against each defaulting defendant in each case. The Court found that the defendants had engaged in deliberate and wilful counterfeiting, even after receiving cease and desist letters. The amount of damages, the Court concluded, was necessary to deter defendants from future infringing activities. Amended judgments were filed on October 20, 1997.

The Applications to Vacate the Judgments

The first of the applications to vacate the default judgments was filed in the Guess case on behalf of Empire by the law firm of Tratner & Molloy on October 31, 1997. It argued that its default was excusable because it was the product of its principal’s limited abilities in the English language. The Court, however, denied the motion because the record showed that Empire had retained Tratner & Molloy in June 1997, the firm represented it at a deposition conducted on June 30, and Empire offered no excuse for the lengthy delay in seeking relief from the judgment. 3

Gold Center, Golden Touch, and Oro-Uno

The issuance of writs of execution prompted additional applications. On December 3, 1997, Gold Center, Golden Touch and Oro-Uno — -all represented by Mr. Hauser— moved by orders to show cause to set aside the judgments against them, Gold Center in both cases and Golden Touch and Oro-Uno in the Guess case.

Gold Center argued in substance that it had assumed that plaintiffs would seek no relief against it by virtue of the Court’s comment at a pretrial conference, attended by Gold Center’s principal (in June 1997), that the matter probably would resolve itself if he cooperated with plaintiffs. He nonetheless admitted service of process, did not contest receipt after the conference of the application to award damages against him, and offered no other excuse for its default. The Court denied Gold Center’s motion for failure to establish excusable neglect. 4

Golden Touch denied having been served while Oro-Uno contended that it had been misled by plaintiffs’ counsel. Following an evidentiary hearing on these two motions, the Court found that Golden Touch had not been served and that Oro-Uno had not been misled by plaintiffs’ counsel. It vacated the judgment against Golden Touch and denied Oro-Uno’s motion. 5

Home Boy

On December 30, 1997, Home Boy, represented by the Lederman firm, moved in both cases by order to show cause to vacate the judgments against it. During argument on January 16, 1998, counsel for Home Boy indicated that it seeks to vacate only the award of money damages and an opportunity to litigate the amount that should be awarded. 6

Gold and Senobar

On December 31, 1997, Mr. Hauser presented another order to show cause in the Guess case, this one seeking a temporary restraining order and vacatur of the judgments against Gold and Senobar. While the Court declined to issue the restraining or *402 der, 7 it made the motion to vacate returnable on January 9,1998.

Big Time and Manny’s

On January 9, 1998, Mr. Hauser appeared with still another order to show cause, this one captioned in both cases. The order itself sought a stay of all enforcement efforts and to bring on a motion to vacate the defaults as to Big Time (both cases) and Manny’s (Guess case).

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Cite This Page — Counsel Stack

Bluebook (online)
997 F. Supp. 399, 1998 U.S. Dist. LEXIS 803, 1998 WL 35013, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gucci-america-inc-v-gold-center-jewelry-nysd-1998.